Conflict of Interest Policy
1. Legal Framework
In accordance with Directive DI144-2007-01, Cypriot Investment Firms (hereafter the “CIFs”)
are required to establish, implement and maintain an effective conflict of interest policy set
out in writing and appropriate to the size and organisation of the CIF and the nature, scale
and complexity of its business.
In addition, according to the Investment Services Activities and Regulated Market Law of
2007, as amended (hereafter the “Law”), CIFs must take all reasonable steps to identify
conflicts of interest between itself, including its managers and employees, tied agents or
other relevant persons, as well as any person directly or indirectly linked to them by control,
and their clients or between one client and another, that arise in the course of providing any
investment and ancillary services.
In this respect, CIFs must establish adequate policies and procedures sufficient to ensure
compliance, including its managers, employees, tied agents and other relevant person(s),
with its obligations pursuant to the Law and the directives issued pursuant to this Law, as
well as appropriate rules governing personal transactions by such persons.
The Company shall establish, implement and maintain an effective conflicts of interest policy
set out in writing and appropriate to the size and organisation of the Company and the
nature, scale and complexity of its business.
When the Company is a member of a group, the policy shall also take into account any
circumstances, of which the Company is or should be aware, which may give rise to a conflict
of interest arising as a result of the structure and business activities of other members of the
The conflicts of interest policy shall include the following:
(a) Identify, with reference to the specific investment and ancillary services and activities
carried out by, or on behalf of, the Company, the circumstances which constitute or
may give rise to a conflict of interest entailing a material risk of damage to the
interests of one or more Clients;
(b) specify procedures to be followed and measures to be adopted in order to manage
The Company shall ensure that the procedures and measures adopted are designed to ensure
that relevant persons engaged in different business activities involving a conflict of interest
carry on those activities at a level of independence appropriate to the size and activities of
the Company, and of the group to which the Company belongs, and to the materiality of the
risk of damage to the interests of Clients.
The procedures to be followed and measures to be adopted include such of the following as
are necessary and appropriate for the Company to ensure the requisite degree of
(a) effective procedures to prevent or control the exchange of information between
relevant persons engaged in activities involving a risk of a conflict of interest where
the exchange of that information may harm the interests of one or more Clients;
(b) the separate supervision of relevant persons whose principal functions involve
carrying out activities on behalf of, or providing services to, Clients whose interests
may conflict, or who otherwise represent different interests that may conflict,
including those of the Company;
(c) the removal of any direct link between the remuneration of relevant persons
principally engaged in one activity and the remuneration of, or revenues generated
by, different relevant persons principally engaged in another activity, where a
conflict of interest may arise in relation to those activities;
(d) measures to prevent or limit any person from exercising inappropriate influence over
the way in which a relevant person carries out investment or ancillary services or
(e) measures to prevent or control the simultaneous or sequential involvement of a
relevant person in separate investment or ancillary services or activities where such
involvement may impair the proper management of conflicts of interest.
In case the adoption or the practice of one or more of the above measures and procedures
does not ensure the requisite degree of independence, the Company shall be required to
adopt such alternative or additional measures and procedures as are necessary and
appropriate for those purposes.
3. Conflicts of interest potentially detrimental to a client
For the purposes of identifying the types of conflict of interest that arise in the course of
providing investment and ancillary services or a combination thereof and whose existence
may damage the interests of a Client, the Company shall need to take into account, by way
of minimum criteria, the question of whether the Company or a relevant person, or a person
directly or indirectly linked by control to the Company, is in any of the following situations,
whether as a result of providing investment or ancillary services or investment activities or
(a) The Company or that person is likely to make a financial gain or avoid a financial
loss, at the expense of the client;
(b) The Company or that person has an interest in the outcome of a service provided to
the client, or of the transaction carried out on behalf of the client, which is distinct
from the client’s interest in that outcome;
(c) The Company or that person has a financial or other incentive to favour the interest
of another client or group of clients over the interests of the client;
(d) The Company or that person carries on the same business as the client;
(e) The Company or that person receives or will receive from a person other than the
client, an inducement in relation to a service provided to the client, in the form of
money, goods or services, other than the standard commission or fee for that service.
The affected parties if conflict of interest arises can be the Company, its employees or its
clients. More specifically, a conflict of interest may arise, between the following parties:
(a) Between the client and the Company;
(b) Between two clients of the Company;
(c) Between the Company and its employees;
(d) Between a client of the Company and an employee/manager of the Company;
(e) Between Company’s Departments.
4. Personal Transactions of Employees
All employees of the Company that are involved in investment activities must be aware of
the restrictions on personal transactions detailed below. This section also includes personal
transactions which may be performed by persons who are employed by companies which
perform an outsourced activity to the Company, if any. If any personal transactions are
entered into, the Company must be notified promptly.
Employees of the Company that are involved in the provision of investment services or other
activities must not enter into the personal transactions that will cause the following:
a) enter into a transaction prohibited under section 9 of the Insider Dealing and Market
Manipulation (Market Abuse) Law;
b) misuse or cause improper disclosure of confidential information;
c) enter in a transaction that is likely to conflict with any obligations of the Company,
or the employee, that are stated under the law.
Where the employee has come into contact with information which is not publicly available
to clients or cannot readily be inferred from information that is so available, the employees
must not act or undertake personal transactions or trade, other than as market makers acting
in good faith and in the ordinary course of market making, or in the execution of an
unsolicited client order, on behalf of any other person, including the Company.
The employees must not disclose any opinion other than in the normal course of business, if
the person who is given the opinion is likely to enter into a transaction which is contrary to
the above. The employee also should not provide an advice or provide to anyone any
information, other than in the proper course of his/her employment, especially if it is clear
that the person who is receiving such information will advise another party who might
acquire or dispose of financial instruments to which that information relates.
Any client’s orders that have been relayed to any employees of the Company must not be
disclosed to another party. An employee of the Company who has knowledge of a potential
client’s order must not carry out a personal transaction that is the same as the client order, if
this will cause a conflict of interest.
The Compliance Officer shall be responsible for maintaining the conflicts of interest policy.
In this respect, the Compliance Officer shall ensure that all the Company’s personnel is aware
of the Company’s conflicts of interest policy and can clearly identify circumstances that may
give rise to conflicts of interest. The Compliance Officer shall be responsible to regularly
review and update the policy.
In case any employee comes across with a situation that may give rise to a conflict of interest,
the employee shall immediately report this to the Compliance Officer. The Compliance
Officer will determine, in consultation with the senior management, if a conflict of interest is
present and take the necessary action to resolve it.
In case where the procedures depicted in the conflicts of interest policy are not sufficient to
ensure, with reasonable confidence, that risks of damage to client interests will be prevents,
the Company shall clearly disclose the general nature and/or sources of conflicts of interest
to the client before undertaking business on its behalf. This disclosure shall be made in a
durable medium and include sufficient detail, taking into account the nature of the client, to
enable the client to take an informed decision with respect to the investment or ancillary
service in context of which the conflict of interest arises.
6. Record keeping
The Company shall maintain a registry, which is regularly updated, of the kinds of
investment and ancillary service or investment activity carried out by the Company or on its
behalf of the Company in which a conflict of interest entailing a material risk of damage to
the interests of one or more clients has arisen or, in the case of an ongoing service or activity,
7. Review of this Policy
The Company may update this Conflict of Interest Policy from time to time. In the event that
the Company materially changes this Policy including how it collects, processes or uses
clients’ personal information, the revised Client Conflict of Interest Policy will be uploaded
in the Company’s website. In this respect, the clients hereby agree to accept posting of a
revised Client Conflict of Interest Policy electronically on the website as the actual notice of
the Company to its clients. Any dispute over the Company’s Client Conflict of Interest Policy
is subject to this notice and the Client Agreement. The Company encourages its clients to
periodically review this Client Conflict of Interest Policy so that they are always aware of
what information the Company collects, how it uses it and to whom it may disclose it, in
accordance with the provisions of this Policy.